In Recent Years _____ Risk Analysis Has Become of Increasing

question 9

Multiple Choice

In recent years _____ risk analysis has become of increasing concern to MNCs because of the growing number of countries that are finding their economies in trouble as in Southeast Asia or even worse, unable to make the transition to a market-driven economy.

• A)Micro
• B)Basic
• C)Macro
• D)Complex

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Definitions:

Target Capital Structure

Refers to the mix of debt, equity, and other financing sources a company aims to maintain to fund its operations and growth.

Dividend Payout Ratio

The fraction of net earnings a firm pays to its shareholders as dividends, expressed as a percentage.

Capital Budget

A budgeting process that entails the evaluation and planning of expenditures for projects and investments that are significant in scope and that will be amortized over several years.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the market capitalization remains the same.